Pet Food - UK - August 2017

OVERVIEW
What you need to know
Products covered in this Report
EXECUTIVE SUMMARY
The market
Value sales continue to see strong growth
Figure 1: Total UK retail value sales of cat and dog food, 2012-22
Volume sales under pressure from a raft of factors
Snacks and treats were the strongest performers in dog food
Figure 2: UK retail value sales of dog food, by type, 2015-17
Dry cat food sees value and volume growth
Figure 3: UK retail value sales of cat food, by type, 2015-17
Shrinking household sizes contribute to falling pet ownership
Inflation brings end to rising real consumer incomes
Companies and brands
Top three dog food brands continue to see sales fall
Figure 4: Leading brands’ sales in the UK retail wet and dry dog food market, by value, 2015/16-2016/17
Felix remains market leader; Gourmet and Sheba go from strength to strength
Figure 5: Leading brands’ sales in the UK retail wet and dry cat food market, by value, 2015/16-2016/17
Dog snacks and wet cat food account for three fifths of 2016 launches
Slimming claims rise; high-protein claims grow but remain niche
Humanisation and premiumisation trends continue
Pet food sees near-static spending on advertising in 2016
Whiskas is the most heavily advertised brand; Felix is up to mischief
The consumer
Pet owners buy a variety of food, but dry remains the most popular
Figure 6: Types of pet food bought and/or prepared, by type of pet bought for, April 2017
Most owners look to vets for information on pet diets
Figure 7: Sources used for advice on healthy diets for pets, April 2017
The vast majority of pet owners say they know how much to feed their pet
Figure 8: Owners’ behaviours and attitudes related to healthy eating for pets, April 2017
Snack allowing easy delivery of medication garner high interest
Figure 9: Interest in innovation in pet food, April 2017
Clarity about the ingredients used in pet food is important
Figure 10: Attitudes towards pet food, April 2017
What we think
ISSUES AND INSIGHTS
Low concern around pet obesity despite rising rates
The facts
The implications
Transparency over ingredients used in pet food is important
The facts
The implications
Chilled pet food can tap into demand for naturalness
The facts
The implications
THE MARKET – WHAT YOU NEED TO KNOW
Value sales continue to see strong growth
Volume sales under pressure from a raft of factors
Snacks and treats were the strongest performers in dog food
Dry cat food sees value and volume growth
Shrinking household sizes contribute to falling pet ownership
Inflation brings end to rising real consumer incomes
MARKET SIZE AND FORECAST
Value sales continue to see strong growth
Figure 11: Total UK retail value and volume sales of cat and dog food, 2012-22
Volume sales under pressure from a raft of factors
Figure 12: Total UK retail volume sales of cat and dog food, 2012-22
Continued growth expected for value sales
Figure 13: Total UK retail value sales of cat and dog food, 2012-22
Forecast methodology
MARKET SEGMENTATION
Snacks and treats were the strongest performers in dog food
Wet dog food maintains share
Figure 14: UK retail value and volume sales of dog food, by type, 2015-17
Dry cat food sees value and volume growth
Figure 15: UK retail value and volume sales of cat food, by type, 2015-17
MARKET DRIVERS
Pet ownership is falling
Figure 16: Pet ownership, by type of pet, December 2012-April 2017
Shrinking household sizes present another threat to pet ownership
Figure 17: Pet ownership by household size, April 2017
Households with children are more likely to own pets
Figure 18: Cat and dog ownership, by presence of children under the age of 18 in the household, April 2017
The ageing population poses a challenge
Figure 19: Pet ownership by age, April 2017
Inflation brings end to rising real consumer incomes
Figure 20: Pet ownership by household income, April 2017
Consumer trust may have been shaken
COMPANIES AND BRANDS – WHAT YOU NEED TO KNOW
Top three dog food brands continue to see sales fall
Felix remains market leader; Gourmet and Sheba go from strength to strength
Dog snacks and wet cat food account for three fifths of 2016 launches
Slimming claims rise; high-protein claims grow but remain niche
Humanisation and premiumisation trends continue
Pet food sees near-static spending on advertising in 2016
Whiskas is the most heavily advertised brand; Felix is up to mischief
MARKET SHARE
Top three dog food brands continue to see sales fall
Harringtons shows substantial growth
Own-label gains share
Figure 21: Leading brands’ sales in the UK retail wet and dry dog food market, by value and volume, 2015/16-2016/17
Good Boy sees second year of stellar performance
Figure 22: Leading brands’ sales in the UK retail dog snacks and treats market, by value and volume, 2015/16-2016/17
Felix maintains position as market leader, but sales fall
Figure 23: Leading brands’ sales in the UK retail wet and dry cat food market, by value and volume, 2015/16-2016/17
Gourmet and Sheba go from strength to strength
Dreamies rebrand drives growth; Whiskas struggles continue
Figure 24: Leading brands’ sales in the UK retail cat snacks and treats market, by value and volume, 2015/16-2016/17
LAUNCH ACTIVITY AND INNOVATION
Dog snacks and wet cat food account for three fifths of 2016 launches
Figure 25: New product launches in the UK pet food market, by segment, 2013-17
Figure 26: Share of new product launches in the UK pet food market, by company, 2013-17
Mars Petcare extends range of cat snacks and treats
Felix FunSauces blur the line between snacks and mealtimes
Nestlé adds two more variants to its Purina-Beyond range
Slimming claims rise in pet food in 2017
Figure 27: New product launches in the UK pet food market carrying a ‘slimming’ or a ‘low/no/reduced fat’ claim, 2013-17
Iams taps into demand for naturalness with new ‘Naturally’ range
Figure 28: New product launches in the UK pet food market carrying a no additives/preservatives or an all-natural claim, 2013-17
Harrington’s re-packages to emphasise natural claims
High-protein claims growing but niche
Figure 29: New product launches in the UK pet food market that carry a high-protein claim, 2013-17
Humanisation and premiumisation trends continue
Tesco offers complete range of chilled pet food
Lily’s Kitchen adds a weekend breakfast to its meal time portfolio…
…and a birthday surprise for dogs
Forthglage’s seasonal launch focuses on seasonal ingredients
Forthglade unveils its first dry dog food range
Skinner’s Petfoods moves into pet market with new ‘Life’ range
British-grown vegetable dog snacks enter the market
ADVERTISING AND MARKETING ACTIVITY
Pet food sees static spending on advertising in 2016
Figure 30: Total above-the-line, online display and direct mail advertising expenditure on pet food, 2013-17
Cat food maintains majority share of adspend
Figure 31: Above-the-line, online display and direct mail advertising expenditure on pet food, by type, 2013-17
Whiskas is the most heavily advertised brand
Figure 32: Share of recorded above-the-line, online display and direct mail advertising expenditure on pet food, by top ten brands, 2013-17
Dreamies introduces impenetrable bag of treats in colourful ad
Sheba’s campaign explores who’s really the boss – Cats or their owners?
Felix causes mischief at Waterloo station
Bakers makes it possible for dogs to go shopping
James Wellbeloved runs first ever TV campaign
Dog food brands look to sponsorship for visibility
Forthglade encourages dog owners to #DumpTheJunk
Royal Canin makes pets stars of their own show
Nielsen Ad Intel coverage
THE CONSUMER – WHAT YOU NEED TO KNOW
Pet owners buy a variety of food, but dry remains the most popular
More dog owners purchase snacks/treats than wet food
Most owners look to vets for information on pet diets
The vast majority of pet owners say they know how much to feed their pet
Satiety offered by diet pet food important for owners
Snack allowing easy delivery of medication garners high interest
Complete meal kits interest a third of pet owners
Clarity about the ingredients used in pet food is important
Low trust in the benefits of gluten-free diets
TYPES OF PET FOOD BOUGHT/PREPARED
Pet owners buy a variety of food, but dry remains the most popular
Figure 33: Types of pet food bought and/or prepared, by type of pet bought for, April 2017
More dog owners purchase snacks/treats than wet food
Feeding dogs homemade food is more common amongst the affluent
SOURCES USED FOR ADVICE ON HEALTHY DIETS
Most owners look to vets for information on pet diets
Few owners have frequent contact with vets
Figure 34: Sources used for advice on healthy diets for pets, April 2017
Three in ten pet owners use healthy diet information on food packaging
Pet charities are rarely used by pet owners for diet information
Under-35s use a variety of sources for information on healthy diets
Figure 35: Sources used for advice on healthy diets for pets, April 2017
OWNERS’ BEHAVIOURS AND ATTITUDES RELATED TO HEALTHY EATING FOR PETS
The vast majority of pet owners say they know how much to feed their pet
Figure 36: Pet food behaviours – CHAID – Tree output, May 2017
Methodology
Tailored advice and measuring scoops can help build confidence
Figure 37: Owners’ behaviours and attitudes related to healthy eating for pets, April 2017
A quarter of pet owners would not know how to help their pet lose weight
Activity levels play a key role in weight management
Satiety offered by diet pet food important for owners
Artificial additives are as much a concern in pet food as in human food
Figure 38: New product launches in the UK pet food market carrying a ‘no additives/preservatives’ claim, 2013-17
INTEREST IN INNOVATION IN PET FOOD
Snack allowing easy delivery of medication garners high interest
Figure 39: Interest in innovation in pet food, April 2017
Calming food appeals to one in five pet owners
Complete meal kits interest a third of pet owners
A third would like a proportion of the price of pet food to go to charity
Londoners show above average interest in recycling schemes
Interest in game meat and offal in pet food
Figure 40: Share of new launches in the pet food market with game meat listed as an ingredient, 2013-17
ATTITUDES TOWARDS PET FOOD
Clarity about the ingredients used in pet food is important
Figure 41: Attitudes towards pet food, April 2017
Healthy eating trends for pets divide owners
Low trust in the benefits of gluten-free diets
Interest in gluten-free peaks among food avoiders
APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations
Consumer research methodology
APPENDIX – MARKET SIZE AND FORECAST
Figure 42: Best- and worst-case forecasts for retail sales of cat and dog food, by value, 2017-22
Figure 43: Best- and worst-case forecasts for retail sales of cat and dog food, by volume, 2017-22
Forecast methodology
APPENDIX – LAUNCH ACTIVITY AND INNOVATION
Figure 44: New product launches in the UK pet food market, by own-label and brands, 2013-17
Figure 45: New product launches in the UK pet food market, carrying a functional claim, 2013-17
Figure 46: New product launches in the UK pet food market carrying diet-friendly or slimming claims, 2013-17
Figure 47: New product launches in the UK pet snacks and treats market that are part of a complementary diet, 2013-17
Figure 48: Share of new product launches in the UK pet food market containing offal, by top 10 types of offal, 2013-17
Figure 49: New product launches in the UK pet food market that are complete pet foods, 2013-17
FEDIAF permitted claims related to the use of the term ‘natural’
Natural
APPENDIX – ADVERTISING AND MARKETING ACTIVITY
Figure 50: Total above-the-line, online display and direct mail advertising expenditure on pet food, by top 10 brands, 2013-17
Figure 51: Total above-the-line, online display and direct mail advertising expenditure on pet food, by top 10 advertisers, 2013-17
Figure 52: Share of above-the-line, online display and direct mail advertising expenditure on pet food, by top 10 advertisers, 2013-17
Figure 53: Above-the-line, online display and direct mail advertising expenditure on cat food, by top 10 brands, 2013-17
Figure 54: Share of above-the-line, online display and direct mail advertising expenditure on cat food, by top 10 brands, 2013-17
Figure 55: Above-the-line, online display and direct mail advertising expenditure on dog food, by top 10 brands, 2013-17
Figure 56: Share of above-the-line, online display and direct mail advertising expenditure on dog food, by top 10 brands, 2013-17
APPENDIX – MARKET SHARE
Figure 57: Leading manufacturers’ sales in the UK retail wet and dry dog food market, by value and volume, 2015/16-2016/17
Figure 58: Leading manufacturers’ sales in the UK retail dog snacks and treats market, by value and volume, 2015/16-2016/17
Figure 59: Leading manufacturers’ sales in the UK retail wet and dry cat food market, by value and volume, 2015/16-2016/17
Figure 60: Leading manufacturers’ sales in the UK retail cat snacks and treats market, by value and volume, 2015/16-2016/17
APPENDIX – THE CONSUMER
Figure 61: Pet food behaviours – CHAID – Table output, May 2017